VANCOUVER, Feb. 14, 2013 /PRNewswire/ - Veris Gold Corp. (TSX: VG) (OTCQB: YNGFF) (Frankfurt Xetra Exchange: NG6A) is pleased to report on the progress of the development of its newest underground mine, Starvation Canyon located in the southern portion of the Jerritt Canyon property in Elko County, Nevada. Jerritt Canyon is a gold producing mine site operated by Veris Gold Corp. USA Inc., a wholly-owned subsidiary of Veris Gold Corp. ("Veris" or the "Company").
Permitting activities with the State of Nevada were completed in 2011 allowing the Company to begin advancing Starvation Canyon to become a producing underground mine. Development continued throughout January 2013 and to date over 400 meters (1,300 feet) of drifting has been completed. Development of the stope accesses in the ore are in progress and gold grades from initial muck sampling are the same or exceed those as predicted from the block model. To date more than 1,500 tons of ore have been brought to the surface and stockpiled for additional sampling and analysis. The next stage in development, construction of a vent raise and a secondary escapeway, is scheduled to begin in the next ten days and should be completed by mid-March at which time production and ore haulage to the plant will be allowed to commence. The project remains on budget and on schedule and is expected to contribute over 33,000 ounces of gold to 2013 production from Jerritt Canyon operations. Starvation Canyon will be the first new mine in production at Jerritt Canyon since 2004.
The Starvation Canyon Measured and Indicated resources including reserves as of December 31, 2011 are 5.9 kt averaging 0.294 opt containing 1,700 ounces and 519.4kt averaging 0.25 opt containing 130,000 ounces, respectively. This information is referenced in the latest NI 43-101 which can be found here: http://www.verisgold.com/i/pdf/Jerritt_43-101_Technical_Report_YE2011.pdf.
The Company's 2013 exploration plans near Starvation Canyon are still being prioritized, but will likely include drilling at the West Starvation target located adjacent and on trend to the Starvation Canyon resource as highlighted in the Titan-24 direct current induced polarization magnetotelluric (DC-IP-MT) ground geophysical survey conducted in 2011.